When American's hear the phrase "Dodd-Frank," they usually think of Wall Street. However, as Bush growth fellow Bernard L. Weinstein...
When American's hear the phrase "Dodd-Frank," they usually think of Wall Street. However, as Bush growth fellow Bernard L. Weinstein points out in a recent OpEd for the Dallas Business Journal, the Dodd-Frank regulations also affect the energy industry. Weinstein writes:
Though aimed principally at the financial services industry, Dodd-Frank also includes new disclosure provisions for oil and gas companies. Specifically, Section 1504 of Dodd-Frank requires any company engaged in the commercial development of oil or natural gas, as well as hard-rock minerals, to disclose in its annual report all payments, royalties, license fees, production entitlements and bonuses. Specific rules for enforcing this section of the law were promulgated by the Securities and Exchange Commission (SEC) on Aug. 22. The alleged purpose of Section 1504 is to increase transparency in the oil and gas industry, particularly in regards to foreign operations. In practice, it will impose expensive compliance obligations and red tape on affected companies who are already subject to the Foreign Corrupt Practices Act (FCPA) that prohibits payments to foreign officials for the purpose of obtaining or retaining business.
You can download Weinstein's entire column here.
